The Financial Stability Oversight Council has unanimously voted to rescind Prudential Financial Inc.’s “too big to fail” tag, meaning no insurers carry the designation anymore — a decision welcomed by major players in the insurance sector.

“The council’s decision today follows extensive engagement with the company and a detailed analysis showing that there is not a significant risk that the company could pose a threat to financial stability,” Treasury Secretary Steven Mnuchin said in a statement Wednesday. “The council has continued to act decisively to remove any designation that is not warranted.”

In a separate statement, Newark, New Jersey-based Prudential said it was “pleased with this decision, which affirms our longstanding belief that Prudential never met the standard for designation. This outcome reflects Prudential’s sustainable business model, capital strength and comprehensive risk management, which have and continue to enable us to fulfill our promises to our customers, deliver consistent performance and meet regulatory obligations.

“Prudential’s approach — working through the FSOC’s rigorous review process — resulted in the council’s appropriate conclusion that Prudential does not pose systemic risk,” the company continued. “We will continue to work with regulators to improve and strengthen the FSOC’s processes and other measures to help address potential risks to financial stability. We also will continue our engagement with the New Jersey Department of Banking and Insurance in its expanded regulatory role as our group-wide supervisor to ensure better, informed public policy outcomes that benefit our clients, customers and other stakeholders.”

The 15-member FSOC has held the responsibility of evaluating companies and had designated four nonbank institutions as systemically important financial institutions since the financial crisis. Institutions designated as SIFIs are subject to stricter oversight and stricter capital requirements.

But the U.S. Treasury Department last year recommended a different approach to evaluating the potential risks posed by nonbank financial companies rather than the current method that led to several major insurers being tagged as “too big to fail.” A U.S. House of Representatives bill also introduced in 2017 to eliminate the ability to SIFI designation for insurers was seen as largely positive for the insurance industry, according to experts.

In January, MetLife Inc. and the FSOC jointly asked a federal appeals court to dismiss the litigation regarding the insurer’s designation as a systemically important financial institution. The insurer won a court challenge against the designation in March 2016 — a decision the government had been appealing until that joint appeal was filed.

This left Prudential as the remaining nonbank SIFI and the removal of its tag drew praise from insurance sector entities.

“This action reflects a greater appreciation of the state insurance regulatory regime and enhancements made to our group supervisory tools,” Julie Mix McPeak, president of the National Association of Insurance Commissioners and Tennessee commissioner of commerce and insurance, said in a statement Wednesday. “It also recognizes the work of the New Jersey Department of Banking and Insurance, as Prudential’s groupwide supervisor, to implement those tools and apply them to its regulation of Prudential.”

“The inappropriate designation of Prudential Financial was the outcome of a flawed process that demonstrated a lack of understanding of the insurance business model and ignored state insurance regulators’ effective oversight of the life insurance industry,” Susan Neely, president and CEO of the American Council of Life Insurers, said in a statement Wednesday.